Scottsdale Man Admits Stealing $23M in Music Royalties

PHOENIX, Ariz. – Jose Teran, 32, of Scottsdale, Arizona, has confessed to a brazen scheme that ripped off millions in music royalties. Last week, Teran pleaded guilty to Conspiracy, Wire Fraud, and Transactional Money Laundering, admitting his role in a multi-million dollar fraud operation. He’s facing a hefty prison sentence when Judge Douglas L. Rayes delivers the verdict on June 26, 2023.

The case stems from a federal indictment issued November 16, 2021, which initially charged Teran and his accomplice, Webster Batista, with a staggering 30 felony counts. Prosecutors allege a systematic effort to illegally profit from music streamed on Y.T. Teran admitted to working with Batista to falsely claim ownership of songs they had no right to control, creating the shell company MediaMuv L.L.C. as a vehicle for their deception.

According to court documents, MediaMuv L.L.C. fraudulently asserted ownership of over 50,000 songs, enabling Teran and Batista to siphon off royalty payments. The pair raked in approximately $23,400,000 through this elaborate scheme, lining their pockets with funds that rightfully belonged to artists and rights holders. It’s a classic case of greed and exploitation in the digital age.

Teran now faces up to five years behind bars for the Conspiracy conviction, a potential 20-year sentence for Wire Fraud, and another 10 years for Transactional Money Laundering. On top of potential imprisonment, he could be slapped with fines totaling up to $250,000 per felony conviction. Batista, Teran’s co-conspirator, previously pleaded guilty to Conspiracy and Wire Fraud on April 21, 2022, signaling a potential domino effect of convictions in this case.

The investigation was spearheaded by the Internal Revenue Service Criminal Investigation, highlighting the federal government’s commitment to tackling financial crimes. Assistant U.S. Attorneys Raymond K. Woo and Seth T. Goertz are prosecuting the case, aiming to deliver justice for the victims of this elaborate fraud. The U.S. Attorney’s Office for the District of Arizona is taking this crime seriously and pursuing maximum penalties.

Were you a victim? If you believe you were defrauded by Teran or Batista, the U.S. Attorney’s Office urges you to contact their Victim Witness Section at usaaz.victimassist@usdoj.gov. Case Number: CR-21-0955-PHX-DLR. Release Number: 2023-018_Teran. For more information, visit http://www.justice.gov/usao/az or follow @USAO_AZ on Twitter. This is a developing story, and Grimy Times will continue to provide updates as they become available.

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